Per capita GDP of a country is the:

• A. Total national income divided by total population, excluding net factor income from abroad
• B. Gross domestic product divided by the number of households
• C. Gross domestic product divided by the labor force
• D. Gross domestic product divided by the total population

Answer: (D)

Verified step by step guidance

1. Understand the definition of per capita GDP: it measures the average economic output per person in a country.
2. Recall that Gross Domestic Product (GDP) is the total value of all goods and services produced within a country's borders in a given time period.
3. Recognize that per capita GDP is calculated by dividing the GDP by the total population of the country, not by households or labor force.
4. Note that net factor income from abroad is excluded in GDP calculations, which differentiates GDP from Gross National Income (GNI).
5. Therefore, the formula for per capita GDP is: \(\text{Per capita GDP} = \frac{\text{Gross Domestic Product (GDP)}}{\text{Total Population}}\).